it’s x’s own current valuation, to calculate stock options to give to employees
Comment on One year after being bought for $44 billion, X is worth $19 billion
Dave@lemmy.nz 11 months agoI’d guess that $19 billion is the value where if someone bought it and did their best to undo everything and get it back on track, that’s how much it would be worth.
The problem with measuring value is you have to quantify what that $19 billion actually is. Like you could say it’s the share price times the number of shares, except now twitter is privately owned we don’t have a market share price anymore.
perviouslyiner@lemm.ee 11 months ago
TenderfootGungi@lemmy.world 11 months ago
Theoretically what someone would pay for it. The buyer always has plans to make it better.
Or the textbook definition, the present value of the sum of all future profits.
Dave@lemmy.nz 11 months ago
That’s an interesting claim to make, especially on this post 😄
assa123@lemmy.world 11 months ago
Indeed very interesting. It is a fundamental principle of finance: Investors seek to maximize utility, but this is under the axiom of complete rationality. And even if that condition is met (which I doubt), the utility function of money is not concave at all levels, for example leftmost of the graph, before the price of food. I think that after some point, utility becomes flat and Musk is way beyond that point. Additionally he seems to be a risk loving investor, not a risk averse.